Auxly Cannabis Closes $84 Million Secured Credit Facility for Sunens Farms
As Auxly Cannabis (TSXV: XLY) forecloses on one client for a secured debt being in default, they’ve entered another secured financing with a different client – this time however, they secured the financing with certain assets of their own. Auxly Cannabis announced this morning that they had closed the previously announced $84 million credit facility with that of Sunens Farms, their joint venture partner.
The financing was conducted via a syndicated credit facility, with the Bank of Montreal acting as the lead underwriter. The debt, which has a term of three years for repayment, is secured by the Sunens facility while also partially guaranteed by that of Auxly Cannabis.
The credit facility is to be utilized to complete phase one of the Sunens Facility, located in Leamington, Ontario. The phase is expected to have substantial completion by December 2019. The 1.4 million square foot phase was initially stated to be complete by the end of the third quarter of 2019 when it was announced in June of last year. As recently as April Auxly has firmly held to this estimated timeline, when in an investor presentation stated that they expected first product delivery from the facility to occur in the first quarter of 2020 – with growing and post harvest timelines considered, this would peg a project completion of roughly the end of the third quarter.
Also contained within the press release, was the news that 3.6 million restricted shares were awarded to certain non-executive employees. The shares have a price per share of $0.89.
Auxly has yet to release information concerning the recent discovery of Currative Cannabis entering receivership at the companys request. It is unclear whether those assets have yet to be acquired by the firm.
Auxly Cannabis is currently trading at $0.89 on the TSX Venture Exchange.
Information for this briefing was found via Sedar and Auxly Cannabis Group Inc. The author is no position in this security and has no affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
